your ' trading Edge '

[bbmac]

This might be interesting:

If you had to describe/summarise your 'trading edge' in one sentence, what would you write: Can you state too whether it is:

a. a technical or fundamental edge or both

-and-

b. what market (s) you trade.


Please only reply if you have a trading edge that is profitable for you, not a hypothetical trading edge.

[For the avoidance of doubt, and for the purposes of this thread, A trading edge is a set of circumstances that when presented represent a trading opportunity that results in a profitable trade more often than not, -or- results in an overal profit being achieved over any given sample of the trading edge presenting itself.]

For example; My trading edge is technical, I trade forex, ...principly Gbpusd and I would summarise it as: Certain repeatable patterns of oscillator extremes/divergence and band/channel deviation at identifiable potential areas of support or resistance.

It should be interesting to see how many of the 76k members of T2W have a profitable trading edge.

 

[new_trader]

This might be interesting:

If you had to describe/summarise your 'trading edge' in one sentence, what would you write:

EVERYTHING IS KNOWN IN ADVANCE :cheesy:

It should be interesting to see how many of the 76k members of T2W have a profitable trading edge.

Yes..

 

[nine]

Technical.

Edge in one sentence: Market moves go further with the trend than against it and trades with the trend are more forgiving of entry error.

Markets where I know its profitable: AsiaPac index futures, Euro futures. Currencies.

 

[smbtnt]

Market edge: Bearish patterns/formations in a bull run are bullish and bullish patterns in a bear trend are bearish

 

[black bear]

The market makes many Highs and many Lows in a day, but only one true High and one True LOW

 

[alexander]

Market edge: Bearish patterns/formations in a bull run are bullish and bullish patterns in a bear trend are bearish

Good point but you can only know you were correct after the fact. Specifically, you can have let's say four bearish formations in a bull run but the fifth one is the real thing that signals the switch to a bear market. The problem is that the fourth one could have done that as well, or the third one and so on.


Alex

 

[black bear]

Double Edge

Technical.

Edge in one sentence: Market moves go further with the trend than against it and trades with the trend are more forgiving of entry error.

Markets where I know its profitable: AsiaPac index futures, Euro futures. Currencies.

The market makes many Highs and many Lows in a day, but only one true High and one True LOW

Alex
__________________
Buy high, sell higher - Sell low, buy lower

 

[trendie]

.......
[For the avoidance of doubt, and for the purposes of this thread, A trading edge is a set of circumstances that when presented represent a trading opportunity that results in a profitable trade more often than not, -or- results in an overal profit being achieved over any given sample of the trading edge presenting itself.]
.....
It should be interesting to see how many of the 76k members of T2W have a profitable trading edge.

Technical player, since I trade intra-day.
Trade FX, (primarily major crosses, due to smaller spreads) and Indices.

I trade smaller-time-frame pullbacks into a larger time-frame trend.
(in a general downtrend, I will short into shorter-TF overbought conditions, and in an uptrend I will buy into shorter-TF oversold conditions.)
I avoid news.

Thanks to you, bbmac, I am beginning to see how I can utilise the very same pullback techniques using sup/res on different TFs.
And thanks to options and nkruger for enlightening me to trading the DAX.

I still get royally skewered on rangey days, and temporarily lose my nerve. but thats trading for you.

 

[smbtnt]

Good point but you can only know you were correct after the fact. Specifically, you can have let's say four bearish formations in a bull run but the fifth one is the real thing that signals the switch to a bear market. The problem is that the fourth one could have done that as well, or the third one and so on.

Alex

Well surely that is true of any trade, you dont know how the trade is going to pan out until after the event, but one would use set rules and discipline to execute the strategy.
I am happy with one leg up/down, my edge is studying and understanding the pullback, span that across multiple instruments and you have yourself a robust system.

 

[Hoggums]

I've been thinking about this for a while - and I don't think I can actually pin down what my edge is - or whether it's real or imaginary - let alone put it into a sentence.

 

[nine]

Good point but you can only know you were correct after the fact. Specifically, you can have let's say four bearish formations in a bull run but the fifth one is the real thing that signals the switch to a bear market. The problem is that the fourth one could have done that as well, or the third one and so on.


Alex

If you have an edge and a plan of how you should execute it then you are correct whenever you execute it.

Whether this particular instance is profitable or not is a chance event totally outside of the trader's control. Hence you must recognize and control your risk (as I'm sure smbtnt does).

 

[jezgw]

every instrument has an average and if the current cost is outside that average then it is a matter of time before the average takes back or gives back the cost

 

[TheBramble]

every instrument has an average and if the current cost is outside that average then it is a matter of time before the average takes back or gives back the cost

A price will deviate around its average - whatever periodicity you assign to the average. The higher the periodicity of the average, the more the price will deviate from it. But the average is a function of the price, not the other way round. It is another representation of the price. You could as easily say the average moves toward the price as the price does toward the average.

If you're saying your edge is to take a trade when the price is some 'larger than average' deviation from the average, you also need to be clear of your direction. Simply going short when the price is further above the 200 sma than it's ever been does not necessarily imply you're in a good position. When the price is further away from its MA then it ever has been - guess what happens to the MA?

I may have totally misunderstood, in which case, apologies and perhaps you could clarify.

 

[jezgw]

I meant profit is determined by exit which is determined by average (or is in my case)

 

[bbmac]

So nearly 76,000 registered members on T2W, 664 views of this thread so far, and precisely 4, yes thats 4 people have been able to sum up their 'trading edge, ' and one has one but can't put into into words.

uuuummmm!! tells a story. Lol.

 

[TheBramble]

So nearly 76,000 registered members on T2W, 664 views of this thread so far, and precisely 4, yes thats 4 people have been able to sum up their 'trading edge, ' and one has one but can't put into into words.

uuuummmm!! tells a story. Lol.

There is a difference between 'able' and 'willing'.

 

[rols]

So nearly 76,000 registered members on T2W, 664 views of this thread so far, and precisely 4, yes thats 4 people have been able to sum up their 'trading edge, ' and one has one but can't put into into words.

uuuummmm!! tells a story. Lol.

Very short time ago we had a thread about trading edges which ended bitterly. The general consensus was that trading edges were by their nature indefinable.

Anybody with a passing interest in physics and maths will know that precisely defining our physical world with numbers is at best fuzzy and frustrating. An annoying fact noted by Pythagoras thousands of years ago. This discovery so changed the Greek view of the universe that they drowned one of their order, Hippasus of Metapontum, for divulging the existence of irrational numbers to an outsider.

http://community.middlebury.edu/~dwalker/class/godelpaper1.htm

Why should trading should be any different?

 

[fibonelli]

Perhaps some like to keep their edge hidden from view!

Anyway, back to those pretty patterns which need to filtered, lest I bust my a/c

 

[dbphoenix]

Perhaps some like to keep their edge hidden from view!

Or they're just weary of thread after thread about "edges". Those who aren't can do a search.

Db

 

[TheBramble]

It’s important to identify precisely what you’re talking about bbmac.

An ‘edge’ is the difference between two traders, using the same setup on the same instrument in the same market at the same time – and one making twice as much or ten times as much profit as the other. That’s an ‘edge’.

What you gave in your original post in this thread as an example:-

For example; My trading edge is technical, I trade forex, ...principly Gbpusd and I would summarise it as: Certain repeatable patterns of oscillator extremes/divergence and band/channel deviation at identifiable potential areas of support or resistance.

is a very woolly and generic overview of a large set of setups. Don’t confuse setups with edges. They are very different. I suspect you probably don’t confuse the two, but others might.

You’d need an awful lot of descriptive narrative to cover ‘certain repeatable patterns’ and ‘ oscillators extremes/divergence’ and ‘ band/channel deviation’ and the identification of ‘potential areas of support or resistance’. And before anyone doubts your positive intent or integrity, I believe you are one of the very few who have gone to exceptional lengths to explain your setups and trading and many who have been following your excellent posts will be well acquainted with their content. But it’s taken you thousands of words, dozens of posts and quite some time for you to give us a hint of what you’re doing – so to expect others to drop what they’re doing and jump through your hoops on this thread just 5 days after starting it was perhaps an unjustifiably naïve expectation. Even if they were or are willing to do so….

Although your purpose and manner in this thread could be construed as a little brash or a bit of a pointless ‘I’ve shown you mine – now you show me yours’ challenge, which it would seem to have been judging by the lacklustre response, I don’t think the lack of response should be quite so neatly summed up as being due to a lack of traders with setups or even with specific edges over those setups. It’s probably an unwillingness to share, an unwillingness to put in the effort required to do so in a way which makes sense or an unwillingness to offer a generic solution which will be of little use without understanding the basis of its construction or its realisation.

That you’ve taken the trouble is admirable – that others choose not to respond to your ‘request’ is neither an indication of the existence of traders on this site with edges, nor is it not.